LONG Tom Peters’ EXCELLENCE. ALWAYS. XAlways/BANGKOK/01August2006

1. LONGTom Peters’EXCELLENCE. ALWAYS.XAlways/BANGKOK/01August2006

2. Slides* at …tompeters.com*also “Final” and “Leadership”

3. 25

4. TheIrreducible209+

5. A frustrated participant at a seminar for investment bankers in Mauritius listened impatiently to my explanation of differences of opinion among me, Mike Porter, Gary Hamel, Jim Collins, etc. Finally, he’d had enough. “What, if anything,” he asked, “do you believe ‘for sure’?”I mumbled something, but his query started rumbling around in my mind. Three days later, wandering on a Sunday in London, the idea of “the irreducibles” occurred to me—and I started jotting down notes on stuff I do indeed believe “for sure.” Before I knew it, a few days later, the list had grown to 209 items. Hence “The Irreducible209” that follows.Tom Peters

6. That’s a Big Number ….

7. THREE BILLION NEW CAPITALISTS—Clyde Prestowitz

8. “One Singaporean workercosts as much as …3 … in Malaysia8 … in Thailand 13 … in China 18 … in India.”Source: The Straits Times/2003

9. EXCELLENCE. THE MANDATE.

10. “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”—Charles Darwin

11. “If you don’t like change, you’re going to like irrelevance even less.”—General Eric Shinseki, Chief of Staff. U. S. Army

12. “We are in a brawl with no rules.”—Paul Allaire

13. S.A.V.

14. Screw Around Vigorously

15. Sam’s Secret #1!

16. “Rewardexcellent failures. Punishmediocre successes.”Phil Daniels, Sydney exec

17. EXCELLENCE. STARTERS.

18. Radio City Music HallSeptember 2005

19. Franchise Lost!TP:“How many of you[600]reallycravea new Chevy?”NYC/IIR/061205

20. 2P.3E.

21. People.Product.Execution.Enthusiasm.Excellence.

22. EXCELLENCE. THE WORD.

23. SynonymsPurityTranscendenceVirtueEleganceMajestyAntonymsMediocritySynonymsPurityTranscendenceVirtueEleganceMajestyAntonymsMediocrity

24. EXCELLENCE. GAMECHANGER.

25. Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties”

26. ExIn*: 1982-2002/Forbes.comDJIA: $10,000 yields $85,000EI: $10,000 yields $140,050*Forbes/Excellence Index/Basket of 32 publicly traded stocks

27. Old Rule Big Dogs Own the Street Be No.1 or No. 2 in the Market Shareholders Rule Be Lean and Mean Rank Players; Go With the A’s Hire a Charismatic CEO Admire My Might Source: Fortune/07.24.2006 New Rule Agile Is Best; Big Can Bite Create Something New The Customer Is King Look Out, Not In Hire Passionate People Hire a Courageous CEO Admire My Soul Sorry, Jack: The New Rules

28. EXCELLENCE. CAUSES.ADVERSARIES.

29. Causes/1966-2006 Implementation/Small Wins (Stanford GSB/PhD thesis; 1st on implementation per se) EXCELLENCE (as a worthy business pursuit) Management Style/Corporate Culture Soft “Ss”/7-S (Waterman-Peters complete “business model”; waaaaay beyond Strategy & Structure) Structure > Strategy (“We shape our structures, then they shape us …”—Churchillian paraphrase) Soft Change Levers (> structure; symbols, patterns & settings) Close to the Customer (novel idea, circa 1982) MBWA (Managing By Wandering Around—courtesy a much more intimate than today HP) Productivity through People (novel idea, circa 1982) Chaos/Crazy Times Call for Crazy Organizations Middle-sized companies are cool Re-imagine!/Innovate or Die! Small-ish/Scale & Synergy limits-delusions/anti-Big Mergers

30. Causes/1966-2006 Women/Market opportunity Women/Leaders (right for the times) Design/Design-as-soul Wow! (Hot language) Weird! Passion!/Enthusiasm!/Exuberance! (as Leader Lever #1) Brand You (or else) PSF = Bedrock (add value or bust—every group must demonstrate economic viability) PSF + Brand You + WOW Projects = New Biz Logic Sales/+R > -C (increasing revenue more important than cutting cost) HealthCare/Wellness-Safety-H5N1 Brand = Talent (best roster wins) New VA Ladder/Products-Services-SOLUTIONS-EXPERIENCES-DREAMKETING (Dream Marketing)-LOVEMARK Different > > Better Boomers & Geezers/marketing to new “mega-segment”

31. Hardball: Are You Playing to Play or Playing to Win? by George Stalk & Rob Lachenauer/HBS Press“The winners in business have always played hardball.” “Unleash massive and overwhelming force.” “Exploit anomalies.” “Threaten your competitor’s profit sanctuaries.” “Entice your competitor into retreat.”Approximately 640 Index entries: Customer/s (service, retention, loyalty),4. People (employees, motivation, morale, worker/s),0. Innovation (product development, research & development, new products),0.

32. M.I.A.*:Talk.(Present.)Listen.(Interview.)Sell.(Life = Sales.)Do.(Execution-Implementation.)Talent.(Recruit-Develop-Retain.)Project Management.(Create. Solicit support. Execution. Adoption-Client “Culture Change.”)Product. (“It.”) Innovation.(Design. Creativity. “Buzz-building.” Politics.)Leadership.(USMA, etc.) E.Q. (Connect.)“Culture” Change. (Lasting impact.) Diversity.(Cross-cultural Effectiveness.)Career Creation.(Brand You life-lifestyle.)Wellness.(Life.) *B.Schools (“M.I.A.” or at most “B.I.A.”—barely in action)

33. Them-UsTom Peters/0624.2006

34. “Them” “Us”Strategy EXECUTIONPlanning ActionMarketing Selling/SalesMarkets CustomersCustomers ClientsMicro-segmentation Big Stuff (Women, Boomers)Cost minimization Revenue maximizationSynergy/“Efficiencies” Decentralization“Strategic supplier Pioneering supplierProcess ProjectEffectiveness ExcellenceMen WomenLeadership Management + LeadershipStandardization Exceptionalism (53 = 53)Big clients COOL clientsPrestigious Board INTERESTING Board

35. “Them” “Us”Big Mid-sizeGrowth by merger Organic growthBuy market share Create NEW marketsEfficient, streamlined Value-creating “PSF” “department” Certainty-predictability Ambiguity-opportunityFearful of losing Aggressive pursuit of winningPlan PrototypeCareful evaluation Another prototypeRevised plan Another prototypePeople/Employees TalentEffective HR department Rockin’ Talent Development Center of ExcellenceBenchmark against the Benchmark against the “best”-“industry leader” “coolest”

36. “Them” “Us”Benchmark “Future”markOrderly career progression “Up or Out” (PDQ)Head HeartIQ EQ“Professional” PassionateStoic, humble leaders Noisy, emotional “characters” in chargeHire for Resume Hire for intangiblesMeasured-thoughtful Relentless, pig-headedapproach determinationTeamwork comes first Teamwork and disruptive individuals equal billingListen to customers Lead customersCustomer “involvement” Intimate-Seamless customer inter-twining

37. “Them” “Us”MBM (Management MBWA by memo)MBA MFAShareholder Value Great people-product rule comes first Work smart Work hardBuilt to last Built to Rock the WorldReward successes Reward (EXCELLENT) failuresQuality first! Design 1TQuality first Innovation 1THigh-quality Jaw-dropping Experience transactionCVs demo consistent CVs feature Magic Moments performanceGood grades Cool stuff Operational excellence World-rocking INNOVATION

38. “Them” “Us”Brand LovemarkBest analysis wins Best STORY wins“Beyond politics” Politics-is-life, the rest is detailsOutsource Bestsource“Motivate” Send on QUESTS“Motivate” InviteMeasured language HOT languageProduct-Service Gamechanging SOLUTION, Thrilling EXPERIENCE, DREAM come true, LOVEMARKPastel Technicolor Better Different“Mission success” “Mission EXCELLENCE”Very good EXCELLENCE. ALWAYS.

39. Porter.Drucker.Bennis.Peters.

40. Importance of Success Factors by Various“Gurus”/(Unreliable) Estimates by Tom PetersStrategySystemsPeoplePassionPorter50%20 20 10 Drucker 25% 35 25 15 Bennis 25% 20 30 25Peters 15% 20 4025

41. good words.Bad words.

42. Words that may NOT be used in my presence:“Motivate” “Market”

43. Words that may NOT be used in my presence:“Motivate”

44. “In the end, management doesn’t change culture. Management invitesthe workforce itself to change the culture.”—Lou Gerstner

45. Words that may NOT be used in my presence:“Market”

46. SellSellSell

47. Words that may NOT be used in my presence: “Motivate” … “Market” … “MBA” … “Plan” (mostly) … “Worker” … “Job” … “Task” … “Exceeds expectations” … “HR” … “Employee evaluation” … “Man” (mostly) …“Shareholder Value”

48. Words that MAY be used in my presence:“Invite” (v. “Motivate”) … “Sell” (v. “Market”) … “People” (we’d like to serve) (v. “Market segment”) … “Client” (v. “Customer”) “OJT/MFA” (v. “MBA”) … “Act”/ “Execute” (v. “Plan”) … “Talent” (v. “Worker”) … “Quest”/“Adventure-in-EXCELLENCE” (v. “Job”) … “Wow Project” (v. “Task”) … “Rockin’ (profit-makin’) PSF” (v. “Department”) … “Theater” (v. “Office”) … “Breathtaking Experience” (v. “Transaction” that “Exceeds expectations”) … “Talent Fanatics Inc” (v. “HR”) … “Brand You adventure” (v “Career development”) “Annual Report development session” … (v. “Employee evaluation”) … “Woman” (v. “Man”) …

49. Words that MAY be used in my presence:… “Wow!” (v. “Nice”) … “Bloody-minded” (v. “Committed”) … “Thank you! (v. “____”) … “Attack”/Innovate (v. “defend”/Entrench)… “Great stuff. Great people. ‘Do it’ fanatics.” (v. “shareholder value”) …“EXCELLENCE. ALWAYS.”(v. “Good work”) (v. “shareholder value”)

50. EXCELLENCE. ALWAYS.